Stock X Has a Standard Deviation of 22 Percent Per

question 44

Multiple Choice

Stock X has a standard deviation of 22 percent per year and stock Y has a standard deviation of 8 percent per year.The correlation between stock A and stock B is .21.You have a portfolio of these two stocks wherein stock Y has a portfolio weight of 40 percent.What is your portfolio variance?

• A).02022
• B).02156
• C).02239
• D).02247
• E).02350

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